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Practical manual VAT 2025.

2. Tax rates

A. Fermented milk

With effect from December 22, 2024, fermented milk will be taxed from 10 percent to 4 percent. 

 B. Olive oil

With effect from January 1, 2025, and on a permanent basis, the tax rate applicable to olive oil will be 4 percent.

C. Seed oils

With effect from 1 January 2025, seed oils are again taxed at the rate of 10 percent.

D. Tax rate applicable to bread

Following the Supreme Court ruling number 1610/2024, of October 15, 2024, the Resolution of February 24, 2025, of the General Directorate of Taxes, on the VAT rate applicable to bread has been published in the BOE with the purpose of clarifying that the reduced rate of 4 percent referred to in article 91.two.1.1.º of the Law of the VAT to deliveries, intra-Community acquisitions or imports of:

  1. All products referred to in Royal Decree 308/2019, of April 26, approving the quality standard for bread.

  2. Products that, responding to the definition of common bread, special bread or semi-finished products referred to therein, have been made with gluten-free flour, either naturally or because it has been subjected to a special treatment to reduce its gluten content, or in which the flour has been replaced by other naturally gluten-free ingredients; although these are the majority in their composition.

Thus, the rate applicable to special breads (multi-grain bread, Vienna bread, toasted bread, rusk, breadsticks, sliced bread, breadcrumbs, sponge bread, fruit bread, gluten-free bread, among others) is not the reduced rate of 10 percent, but the super-reduced rate of 4 percent.